You are considering buying the stock of Strava Corporation at its current market price of $40 since its valued at $70. Based on historical performance, you expect earnings and dividends to grow at a constant rate of 6%. You would require a return of 10% based on a beta of 1.4. The stock just paid a dividend of $5 based on recent accounting statements. What is your expected return if you purchase the stock today? (6) rs = TRF + B (rm- TRF) V = D rs-g += D// +9 D P

You are considering buying the stock of Strava Corporation at its current market price of $40 since its valued at \$70. Based on historical performance, you expect earnings and dividends to grow at a constant rate of 6%. You would require a return of 10% based on a beta of 1.4. The stock just paid a dividend of $5 based on recent accounting statements. What is your expected return if you purchase the stock today? (6) V=rsgD1rs=rRF+B(rmrRF)r^=PD1+g